Investing.com - The U.S. dollar was rangebound against its major counterparts on Monday, as concerns over Spain supported safe haven demand, but the dollar remained under pressure amid speculation over the possibility of more easing by the Federal Reserve.
During European morning trade, the dollar edged higher against the euro, with EUR/USD sliding 0.17% to hit 1.3232.
On Friday, official data showed that gross domestic product in the U.S. expanded at a rate of 2.2% in the three months to March, below expectations for a 2.5% increase.
The disappointing data fuelled speculation that the Fed may implement a fresh round of monetary stimulus measures after Fed chief Ben Bernanke left open the possibility following the bank’s monetary policy meeting last week.
Sentiment on the euro was hit after official data confirmed that the Spain’s economy entered a recession in the first quarter, with gross domestic product contracting by 0.3% in the three months to March and 0.4% year-on-year.
Market reaction remained muted as the figures were slightly better than estimates released by the Bank of Spain last week for a 0.4% contraction in the first quarter and a 0.5% contraction on the year.
The data came after ratings agency Standard & Poor’s announced widespread credit ratings downgrades for the country’s banking sector, following a two notch downgrade of Spain’s sovereign credit rating last week.
The greenback was trading close to an eight-month low against the pound, with GBP/USD rising 0.15% to hit 1.6289.
The pound remained supported despite official data last week showing that the U.K. economy entered a recession in the first quarter, as investors continued to view sterling as a safe alternative to the euro.
Elsewhere, the greenback slipped lower against the yen but edged higher against the Swiss franc, with USD/JPY sliding 0.14% to hit 80.15 and USD/CHF adding 0.13% to hit 0.9075.
The greenback pushed higher against its Canadian, Australian and New Zealand counterparts, with USD/CAD inching up 0.07% to hit 0.9812, AUD/USD shedding 0.25% to hit 1.0445 and NZD/USD dipping 0.09% to hit 0.8213.
In New Zealand, government data showed that the trade surplus narrowed unexpectedly in March, falling to NZD134 million from a surplus of NZD161 million the previous month.
A separate report showed that building consents in New Zealand jumped 19.8% in March, after a 6.7% fall the previous month.
The dollar index, which tracks the performance of the greenback versus a basket of six other major currencies, dipped 0.01% to trade at 78.78.
Later in the day, the U.S. was to publish official data on core personal consumption expenditures price inflation and personal spending, as well as a report on business activity in Chicago.
During European morning trade, the dollar edged higher against the euro, with EUR/USD sliding 0.17% to hit 1.3232.
On Friday, official data showed that gross domestic product in the U.S. expanded at a rate of 2.2% in the three months to March, below expectations for a 2.5% increase.
The disappointing data fuelled speculation that the Fed may implement a fresh round of monetary stimulus measures after Fed chief Ben Bernanke left open the possibility following the bank’s monetary policy meeting last week.
Sentiment on the euro was hit after official data confirmed that the Spain’s economy entered a recession in the first quarter, with gross domestic product contracting by 0.3% in the three months to March and 0.4% year-on-year.
Market reaction remained muted as the figures were slightly better than estimates released by the Bank of Spain last week for a 0.4% contraction in the first quarter and a 0.5% contraction on the year.
The data came after ratings agency Standard & Poor’s announced widespread credit ratings downgrades for the country’s banking sector, following a two notch downgrade of Spain’s sovereign credit rating last week.
The greenback was trading close to an eight-month low against the pound, with GBP/USD rising 0.15% to hit 1.6289.
The pound remained supported despite official data last week showing that the U.K. economy entered a recession in the first quarter, as investors continued to view sterling as a safe alternative to the euro.
Elsewhere, the greenback slipped lower against the yen but edged higher against the Swiss franc, with USD/JPY sliding 0.14% to hit 80.15 and USD/CHF adding 0.13% to hit 0.9075.
The greenback pushed higher against its Canadian, Australian and New Zealand counterparts, with USD/CAD inching up 0.07% to hit 0.9812, AUD/USD shedding 0.25% to hit 1.0445 and NZD/USD dipping 0.09% to hit 0.8213.
In New Zealand, government data showed that the trade surplus narrowed unexpectedly in March, falling to NZD134 million from a surplus of NZD161 million the previous month.
A separate report showed that building consents in New Zealand jumped 19.8% in March, after a 6.7% fall the previous month.
The dollar index, which tracks the performance of the greenback versus a basket of six other major currencies, dipped 0.01% to trade at 78.78.
Later in the day, the U.S. was to publish official data on core personal consumption expenditures price inflation and personal spending, as well as a report on business activity in Chicago.